WTO panel bans dolphin labels

The popular "dolphin-safe" labels used to market tuna sold in the US are illegal because they restrict too much trade, a World Trade Organisation panel has ruled in handing a partial victory to Mexico.

The WTO panel concluded the labels authorised by the US Commerce Department "are more trade-restrictive than necessary to achieve a legitimate objective" of letting consumers know whether dolphins were accidentally harmed in tuna fishing.

It said the labels protected dolphins in US waters but "only partially fulfill" that goal elsewhere. But the panel rejected Mexico's claim its tuna products were treated differently than those of the US or other nations.

"The WTO ruling is a crushing blow to the label 'dolphin-safe' and opens the way for Mexican producers to enter the US market without restrictions, as is their right," Mexican economy secretary Bruno Ferrari said.

US officials could not immediately be reached for comment, but they can appeal Thursday's decision.